Dubai is recognized as an investment capital of the Middle East with immense opportunities and success stories. As a matter of fact, Dubai is globally perceived to be the most investor-friendly while setting new benchmarks in the international market. In addition, being centrally-located and administering tax free policies is a major reason to coax investors from all over the world.
Statistics suggest that UAE has attracted FDI inflows worth $21 billion and $22 billion in 2021 and 2022 respectively. Although the oil and gas sector has been a dominant revenue force since years, the UAE has diversified its economy significantly.
Whether you are an expat or an Emirati, leading the investment journey independently is intimidating. Lack of expert help is bound to advance painful errors. Some of which are being over-focused on one industry, not diversifying the portfolio rightly or being locked into saving plans.
So, here’s throwing some light on the ideal and investable sectors in Dubai.
5 best ideal sectors to invest in Dubai
While the world breathes a sigh of relief from the coronavirus threat, the healthcare industry has transformed dramatically and expedited sustainable solutions. Looking back, the healthcare spend from 2018-2022 in the UAE has grown at a CAGR of 9.5%. Also, the pharmaceutical market in 2020 was valued at $3.5 billion and is anticipated to grow at a CAGR of more than 7% in the near future.
In addition to the modern treatments and latest technology in the space, healthcare has depicted a booming growth in recent years. Medical tourism has returned pre-covid levels with major prominence on cutting-edge innovation and automation. At present, healthcare is expected to be the most priority sector in Dubai and envisioned to generate a whooping revenue of $10.7 billion by 2025.
UAE’s renewable energy sector showcases a steady growth and is expected to have an increased capacity of 44% in 20250. The soaring trajectory is likely to be represented largely by construction and transportation.
With major attribution of being abundant, clean and cost effective; an increasing trend of solar energy projects are cropping up across the country. This has led to increasing revenue, jobs and great opportunities for investors.
UAE is home to three of the lowest-cost and largest solar plants in the world. Dubai is on its way to accomplish its green energy goals and targets to source 75% of the electricity generation from renewables by 2050.
Food & Beverage
At present, the Food & Beverage (F&B) sector is a major contributor to the UAE economy. Also, a positive trend of adopting a healthy lifestyle has led to an obvious shift towards a healthy F&B. An inception of new choices such as organic, gluten-free and baked food is noticed along with people majorly delving into it.
In 2023, the F&B revenue is certain to touch $37.89 bn and is forecasted to grow by 4.39% from 2023-2027. In recent times, UAE has attracted massive international and home-grown brands and has also set its foot in an evolving F&B delivery sector. The industry has undergone massive expansion in the last few years and the enthusiasm continues as foreign investment increases self-sufficiency and production.
Furthermore, the Food & Beverage industry is lucrative for many reasons including world famous restaurants, state of the art infrastructure, easy licensing procedure and global tourism.
The Dubai real estate market has already gained immense growth post pandemic and has successfully set new records. It’s safe to say UAE is recognized for its investor-friendly practices- no capital gains tax, annual property tax, value added tax or rental revenue tax. Because of these reasons, an investor is convinced about dedicating a larger financial portfolio to real estate. The promising space assures high returns and security, checklisting all the criterias of an investor.
The government has allowed foreign investors to buy properties in the city without any restrictions. Also, an average rental yield of 5-9% is enjoyed by investors. Let’s just say, Dubai is likely to be titled as a real estate paradise in the coming years. To simply spell out some good news, in 2022 the real estate space projected record-breaking transactions and is expected to experience the same in 2023.
Dubai is known as a haven for tech investors. The city is home to a large number of high-net-worth individuals and tech has swiftly slided in the list of most popular investments. Dubai is aspiring to be a smart city having autonomous vehicles communicating with road signs, traffic lights and more.
Also, the city is eyeing being a key global player in the technology industry and likely to contribute about 9% growth to the GDP in the next few years. The implementation of emerging technologies like artificial intelligence, Internet of Things, automation and more has boosted efficiency and productivity across almost every sector.
Moreover, Dubai has initiated the development of a world-class robotic system by adopting advanced robotic technologies to remodel Dubai into a global destination in R&A for innovation; thereby creating more opportunities and enhancing quality of life.
With 2022 done and dusted, 2023 has opened up new & more avenues for investors. However, to understand the market in more detail, scout for successful options and explore more investment-pouring industries, speak to our experts from HRG Group. – (https://hrginvestment.com)